SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15576 / December 1, 1997
SECURITIES AND EXCHANGE COMMISSION V. ROBERT HUNTER, EDWARD R. DUDLIK, JR.,
THOMAS F. GOLDMAN, W. KENNETH GREENWOOD, JOSEPH MCKEON, KATHY NAUMANN,
BENJAMIN PAUL, THOMAS B. PILEGGI, JOHN ROSE, JOHN ROSE, JR., RAYMOND F.
WHITE, AND H. CONSTANCE NEFF AS RELIEF DEFENDANT, CIVIL ACTION NO. 97-cv-
4621 (E.D. Pa.) (Bartle, J.)
The Securities and Exchange Commission announced that on November
20, 1997, the United States District Court for the Eastern District of
Pennsylvania entered final consent judgments of permanent injunction and
other relief against defendants Kathy Naumann and W. Kenneth Greenwood in
this insider trading case. According to the Commission's Complaint, filed
on July 16, 1997, Naumann learned that CoreStates Financial Corp. had made
an acquisition proposal to acquire Independence Bancorp, Inc. ("INBC"),
from her uncle, defendant Robert Hunter, an INBC director. Naumann
purchased INBC stock just prior to the merger announcement in November 1993
while in possession of this material, nonpublic information and made $2,250
in profits. Naumann also purchased stock for her business associate and
tipped her mother and cousin, both of whom purchased INBC stock as well.
Greenwood, who was a director of the Cheltenham Bank, a wholly owned
subsidiary of INBC, purchased INBC stock after learning about the
acquisition proposal and made $150,412 in profits. Also, in January 1993
Greenwood sold approximately 95 per cent of his holdings in INBC stock
after learning that INBC had suffered a quarterly loss in earnings and
prior to the public release of that information. In so doing, Greenwood
avoided losses of $33,750.
Without admitting or denying the allegations in the Complaint, Naumann
and Greenwood consented to the entry of final judgments of permanent
injunction against future violations of the antifraud provisions of the
federal securities laws. Naumann agreed to disgorge her profits and the
profits of her tippees, which totaled $5,050, pay prejudgment interest of
$1,904.19, and a penalty of $5,050. Greenwood agreed to disgorge his
profits and the amount of his losses avoided, or $184,162.50, pay
prejudgment interest of $70,608.99, and a penalty of $184,162.50.
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PERMANENT INJUNCTIONS ENTERED AGAINST KATHY NAUMANN AND W. KENNETH
GREENWOOD
The Securities and Exchange Commission announced that on November
20, 1997, the United States District Court for the Eastern District of
Pennsylvania entered final consent judgments of injunction and other
relief against defendants Kathy Naumann and W. Kenneth Greenwood for
trading in the securities of Independence Bancorp, Inc. ("INBC"),
while in possession of material, nonpublic information concerning a
proposal to acquire INBC in November 1993. According to the
Commission's Complaint, filed on July 16, 1997, Naumann was tipped
about the acquisition by her uncle who was an INBC director, defendant
Robert Hunter. Naumann purchased INBC stock and made $2,250 in
profits. She also purchased stock for her business partner, and
tipped her mother and cousin, who also purchased. Greenwood, a
director of the Cheltenham Bank, a wholly owned subsidiary of INBC,
purchased INBC stock after learning about the proposed acquisition and
made $150,412 in profits. Greenwood also avoided losses of $33,750 in
January 1993 when he sold his stock prior to the public announcement
of an INBC negative earnings release.
Without admitting or denying the allegations in the Complaint, Naumann
and Greenwood consented to the entry of permanent injunctions against
future violations of the federal securities laws. Naumann agreed to
disgorge her profits and the profits of her tippees, which totaled
$5,050, pay prejudgment interest of $1,904.19, and a penalty of
$5,050. Greenwood agreed to disgorge his profits and the amount of
his losses avoided, or $184,162.50, pay prejudgment interest of
$70,608.99, and a penalty of $184,162.50. [SEC v. Robert Hunter,
Edward R. Dudlik, Jr., Thomas F. Goldman, W. Kenneth Greenwood, Joseph
McKeon, Kathy Naumann, Benjamin Paul, Thomas B. Pileggi, John Rose,
John Rose, Jr., Raymond F. White, and H. Constance Neff, 97 Civ. 4621
(E.D. Pa.) (Bartle, J.)] (Litigation Release No. 15413)
Person to Contact:
Daniel J. Goldstein
Assistant Regional Director
212-748-8066
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